Has anybody applied for a small business license while they are Active Duty?

SrA Private RallyPoint Member — Sun, 24 Mar 2019 11:48:31 -0400

I am looking into starting a side business while I am Active Duty, I would primarily be an auto transport/hot shot trucker on some of my days off. Since I my home of record is not where I currently live I am running into some issues with a business license and proper DOT requirements.

Response by SPC Erich Guenther made Mar 24 at 2019 12:37 PM

SPC Erich Guenther — Sun, 24 Mar 2019 12:37:52 -0400

I have no idea what you mean by small business license and I suspect you mean DOT licensing. However business setup does not recognize the Armed Forces differentiation between HOR and Current Station of assignment. So whereever you file your taxes is where you should setup the C-Corp, LLC, or S Corporation, it is a lot easier that way at tax time. Then you can file seperate taxes in the state that your operating in as a foriegn state Corporation.........nothing wrong with that and most companies that do operations in several states do it this way. You just need to mention on your business card in small print under business name, etc "A Texas LLC"..............why do you need to do that? Reference checks on your creditworthiness and amount of time in business are performed by clients and vendors and they really need to know what state your setup in. In regards to DOT licensing.........going off very old memories as a long ago School Bus Driver. Again you need to get your DOT license in the state that your business is based, then attempt to get whatever additional is needed to operate in the state that your based. Again for taxes, licenses, if they are all in sync it is easier to understand your setup. Does that make sense? I am not an expert on DOT requirements but you should still have your HOR drivers license even though you have foriegn plates on your car if your stationed outside of HOR. See you have that root back to your resident state there for civilian car license, you should do the same for Chauffers License and Commercial licensing. One other item, be aware that in some states on the side of the cab of your truck you have to list the business name and the DOT License number by law.

Also, one thing to keep in mind. Setting up a business exposes you to substantial liability in paying creditors, fines, fees, etc. Airmans Salary would not be even close to covering some of it. You really should inform your Chain of Command about this if you have not already. The reason being is if you do get in any legal oversight trouble........they are not blindsided. Also, there are jerks out there who drive like crap that like to blame their accidents on other people and if they see that they can involve a commercial truck in their accident they see a small money pot. Just a word of caution.

Response by MAJ Raúl Rovira made Mar 24 at 2019 5:52 PM

MAJ Raúl Rovira — Sun, 24 Mar 2019 17:52:06 -0400

Getting a business license while on active duty or after military service is the same. The difference is when on active duty, you have to ask the commander for permission. Take a look at the "Off Duty Employment" Policy letter in your command. Your first general officer in the chain of command has this. Ignorance will not save you here.

Specifically on the business license:
1. Figure out your NAICS. Which stands for North American Industry Classification System. Here is the link https://www.census.gov/eos/www/naics/
2. Figure out if you want to be a single member LLC or Sole proprietor.
3. At least in Alaska, it cost me $300 total to get a business license and to register the LLC for a 2 year period. Go to your state website to apply.
4. From the IRS Website get an Employer ID Number. Sometimes called EIN. https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online This will let you open a business bank account and business credit card.
5. (optional) Quickbooks I have it tied to my business account and business credit card. Best way to track income, expenses and prepare a schedule C for taxes. Legally I do not want to mix business money with personal money.
6. Business insurance. You will need some type of liability insurance.

Good luck.

North American Industry Classification System (NAICS) Main Page U.S. Census Bureau

Main Page - North American Industry Classification System (NAICS) - US Census Bureau. The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.